High energy prices and global warming have shifted the focus of governments all over the globe toward sustainable energy. On this front, the largest and most developed economies in the world have started to provide incentives to both customers and companies to acquire and develop environmentally friendly alternative energy products.

One such category of products is solar panels, which provide users with the ability to harness the energy of the Sun and use it as electricity. Industry outlooks for this segment are bright, especially at a time when the world was once again reminded of its dependence on crude oil when prices skyrocketed in the aftermath of the Russian invasion of Ukraine.

This market is one of the most valuable ones that you will come across, and nearly every research report that we have analyzed estimates that the value of this segment will be worth hundreds of billions of dollars. Starting from Fortune Business Insights, the research firm estimated that the solar market was worth $170 billion in 2020 and that it will grow at a compounded annual growth rate of 6.9% to reach $293 billion as 2028 ends.

Solar energy investing

Solar energy is one of the most promising renewable energy sources. There are several ways to invest in solar energy for investors interested in supporting an industry that may help reduce dependence on traditional fossil fuels and help combat climate change.

What Is Solar Investing?

Solar investing generally refers to investing in companies that produce or sell solar energy products. This can include solar panel manufacturers, installers, or companies operating solar energy facilities. Investors usually invest in solar through traditional products like stocks, mutual funds, and exchange-traded funds (ETFs).

Another common type of solar investing is the installation of solar panels on a home or business. Solar panels can be used to power all or part of a home or business, and the electricity generated can offset the cost of an energy bill. Investors can also use solar panels to generate income by selling their electricity back to a utility company.

Are Solar Panels a Good Investment?

Solar energy offers several remarkable benefits:

1.Solar saves you money on energy bills.

 You use energy from the sun. The cost of solar energy is less than the cost of electricity produced in other ways. As energy costs go up at your utility company, the amount of your solar savings increases.

2.Solar improves home value.

 Buyers like to have solar energy because it means they can worry less about electrical costs. Home appraisers often value a solar energy system at, or above the cost of parts and installation. Your residential solar energy system will improve your home’s value for years to come.

3.Solar systems offer lots of options.

You can stay on the grid and sell back excess power. You can install solar panels on your roof or you can have a ground-mounted system. You can even use solar as a backup source of power.

4.Solar is a renewable source of energy.

 You never have to worry about rising fossil fuel prices or the environmental impact of burning fossil fuels.

You start saving right away. You can see the results of switching to solar immediately, so you don’t have to wait to start enjoying the benefits.

Government Incentives for Solar Energy

One of the primary reasons why solar energy is a smart investment is because of the incentives available:

1.Tax deductions.

 If you have a business or you run a business from home, you may be able to claim your solar energy system as a tax deduction, just as you claim any equipment.

2.Federal tax credits.

You can enjoy a 30% federal tax credit on the cost of your solar system. There is no cap on the credit and it can be applied to future years as well.

3.Solar Renewable Energy Credits (SRECs).

Regulations mandate that Pennsylvania power companies buy at least some of their power from renewable sources. This means you can sell energy to your utility company and get paid for it.